Families squeezed by middle-class inflation

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Bills for nannies, gardeners and private schools have all risen above inflation, while the family budget has been dented further by the added cost of university tuition fees.

Figures show middle class and wealthy families being hit with huge rises in costs

Official figures yesterday showed that inflation overall has fallen, thanks to a drop in gas and electricity bills.

But domestic costs such as home helps and cleaners have risen by 5.3 per cent, health insurance by 6.7 per cent and the cost of education by 14 per cent, placing a huge burden on parents getting 3 per cent salary rises.

Homeowners were also warned to prepare for a fifth hike in their mortgage charges in less than a year.

The Bank of England has raised rates four times since last August to a 6-year high of 5.5 per cent but it could hit 5.75 per cent in the next few weeks and six per cent by the end of the year.

The Consumer Prices Index, the Government's chosen measure of inflation, fell from 3.1 per cent in March, its highest level for 15 years, to 2.8 per cent in April, the Office for National Statistics said yesterday.

The Consumer Prices Index - the official measure of annual inflation - rose by 2.8 per cent last month

The more comprehensive Retail Prices Index, which includes housing costs, stood at 4.5 per cent in April, down from 4.8 per cent the previous month.

Britain's inflation is higher than any other major European economy.

Jonathan Loynes, of Capital Economics, said: "If you are a middle-class family, particularly if you send your children to private school or university, then you are probably experiencing a much higher inflation rate than the national average.

"This will vary very much from family to family but some people are likely to be experiencing inflation rates of up to 5 to 6 per cent a year."

Middle class families are being hit by inflationary pressures despite official figures showing a downward trend